Active criminal investigation on FTX has been launched

Key points: 

• The country’s Attorney General, Ryan Pinder, noted that the country’s financial intelligence unit and the police’s financial crimes unit are expected to work with the Securities Commission of the Bahamas [SCB] to investigate the FTX’s bankruptcy.
• "We are in the early stages of an active and ongoing investigation" - Pinder stated.

The entire crypto world saw the downfall of the FTX empire. The Bahamas was one of the first countries to freeze the exchange’s assets just as the FTX collapse came to light. While some praised the Bahamas for taking swift action on FTX, others, like the company’s new CEO and lawyer, condemned the government. The country’s Attorney General, Ryan Pinder, live-streamed on Facebook and addressed the nation to give the cryptocurrency space an update on the FTX investigation.

Pinder noted that the country’s financial intelligence unit and the police’s financial crimes unit are expected to work with the Securities Commission of the Bahamas [SCB] to investigate the “facts and circumstances” of FTX’s bankruptcy.

Pinder further detailed his current investigation into the platform in question, saying:

We are in the early stages of an active and ongoing investigation. This is a very complex investigation.

Notably, earlier this month, the Royal Bahamas Police revealed that government investigators were trying to investigate possible "criminal wrongdoing."

The Attorney-General further praised the SCB for its swift action. Standard Chartered transferred all frozen assets to wallets under its control. Pinder praised the move, adding: "By any measure, the speed with which the Securities Commission has acted has been astounding."

Bahamas Attorney General Summons New FTX CEO

Some blamed Sam Bankman-Fried, and others accused the Bahamas of not monitoring the exchange. The company's new chief executive was among them when he suggested the government ordered "unauthorized" transactions. However, the country's attorney general, Pinder, dismissed chief executive John Wray III's claims.

In his address to the nation, Pinder noted that FTX's new CEO "misrepresented the SEC's timely actions and used inaccurate allegations." He noted that the CEO's statement was a rather "excessive and inaccurate allegation".

Pinder went on to defend the Bahamas saying: